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Bank of Canada Rate Announcement Mar 2nd, 2022

James Loewen • March 2, 2022

Bank of Canada increases policy interest rate.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

March 2, 2022

The Bank of Canada today increased its target for the overnight rate to ½ %, with the Bank Rate at ¾ % and the deposit rate at ½ %. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds on its balance sheet roughly constant until such time as it becomes appropriate to allow the size of its balance sheet to decline.

The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty. Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth. Financial market volatility has increased. The situation remains fluid and we are following events closely.

Global economic data has come in broadly in line with projections in the Bank’s January Monetary Policy Report (MPR). Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected, although the virus continues to circulate and the possibility of new variants remains a concern. Demand is robust, particularly in the United States. Global supply bottlenecks remain challenging, although there are indications that some constraints have eased.

Economic growth in Canada was very strong in the fourth quarter of last year at 6.7%. This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed. Both exports and imports have picked up, consistent with solid global demand. In January, the recovery in Canada’s labour market suffered a setback due to the Omicron variant, with temporary layoffs in service sectors and elevated employee absenteeism. However, the rebound from Omicron now appears to be well in train: household spending is proving resilient and should strengthen further with the lifting of public health restrictions. Housing market activity is more elevated, adding further pressure to house prices. Overall, first-quarter growth is now looking more solid than previously projected.

CPI inflation is currently at 5.1%, as expected in January, and remains well above the Bank’s target range. Price increases have become more pervasive, and measures of core inflation have all risen. Poor harvests and higher transportation costs have pushed up food prices. The invasion of Ukraine is putting further upward pressure on prices for both energy and food-related commodities. All told, inflation is now expected to be higher in the near term than projected in January. Persistently elevated inflation is increasing the risk that longer-run inflation expectations could drift upwards. The Bank will use its monetary policy tools to return inflation to the 2% target and keep inflation expectations well-anchored.

The policy rate is the Bank’s primary monetary policy instrument. As the economy continues to expand and inflation pressures remain elevated, the Governing Council expects interest rates will need to rise further. The Governing Council will also be considering when to end the reinvestment phase and allow its holdings of Government of Canada bonds to begin to shrink. The resulting quantitative tightening (QT) would complement increases in the policy interest rate. The timing and pace of further increases in the policy rate, and the start of QT, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is April 13, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

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James Loewen

Top Factors to Consider When Choosing a Mortgage Broker in Canada

By james loewen • November 21, 2024

Top Factors to Consider When Choosing a Mortgage Broker in Canada In Canada, buying a house can be exciting yet daunting, especially when thinking of the best mortgage to choose. One of the best ways to make this process easier is by engaging an experienced mortgage broker in Canada. These are professionals who work by connecting you to lenders so that you can find the best loan option available for you. Their vast knowledge of the mortgage sector enables them to help you get the best offers possible. But how do you go about choosing the right mortgage broker from the many available? Factors to Consider When Choosing Mortgage Brokers: Looking to choose mortgage broker? Here are the factors to consider: 1. Experience and Expertise In terms of mortgage broker factors , choosing a mortgage broker, the first important aspect to examine is their experience. This is because the Canadian mortgage sector is quite multifaceted with many laws, rules, and lender union characteristics. An experienced broker is likely well versed in these intricacies and will provide such advice depending on individual financial capabilities. Ask for how long they have been in the business and how many clients they have successfully assisted. Also, a seasoned mortgage loan officer usually has established relationships with many lenders, which in turn will offer better options for you. Most of the time, even more useful information will be when a mortgage broker works in a particular niche. For example, first time home buyer Burlington or the local property market of Hamilton or Milton would be niches where the expertise will come in handy. Need help to choose the best mortgage broker in Canada? Contact us at Loewen Group to get mortgage broker tips and services. Call (289) 337-4029 or start here . 2. Range of Lenders and Products An adept mortgage brokerage firm must have access to several lenders as well as different mortgage options. It is because mortgage broker in Hamilton are on good terms not only with banks and credit unions but also with private lending firms, so they will definitely help in finding the most suitable loan according to the client’s needs as well as their financial capabilities. Also, it is more likely that favorable terms for the loan and adequate interest rates are available when a broker has contacts with several lenders instead of one or two. Ask the broker what type of lenders they work with. Brokers with a larger network tend to be able to provide more options than those who are limited to a few lenders. Be sure also to ask if they have such product capabilities or that they have worked with certain types of lenders. 3. Reputation and Reviews Research and analyze the feedback on the best mortgage broker in Canada. Look for online appraisals on Google, social networks, and other further sites, as well as testimonies of their previous clients. An ideal mortgage broker will always have great reviews from clients who appreciate the broker’s skill and results. If family members, friends, or coworkers have ever used the services of a specific broker and were pleased with the outcome, do not hesitate to request contacts. It is more likely that a trustworthy and reputable mortgage broker in Hamilton, Milton, or Burlington will provide great service and navigate you through the mortgage process seamlessly. 4. Knowledge of Government Programs and Incentives Canada has many programs designed to help young starters, in particular first-time homebuyers. A good broker would know these plans and help you make use of those available to you. For instance, should you be purchasing in Burlington, Hamilton, or Milton, they may know of local initiatives in Ontario such as the Home Buyers’ Plan HBP or even the First-Time Home Buyer Incentive. Ask the potential brokers if they are aware of the schemes and if they have helped clients to access them in the past. You can save on expenses and eschew difficulties in buying a home by engaging the services of a broker who is knowledgeable about government support programs. 5. Local Market Knowledge Market research at the local level can considerably impact one’s decision on acquiring a property. Be it Burlington, Hamilton, Milton, or any other area, a mortgage broker Milton with extensive experience in the given region will be aware of the community features, range of the properties, and prevailing tendencies that affect the mortgage or home buying schedule. He or she probably has turned into contacts with banks, appraisers, and real estate agents, thus further shortening the time frame. Conclusion A crucial first step in the home-buying process is selecting the appropriate mortgage broker Burlington . You may discover a broker who meets your demands and will strive to get you the best mortgage by taking into account elements like experience, reputation, variety of lenders, customer service, and local knowledge. Taking the time to do your homework and make an informed decision can make all the difference, whether you're a first-time purchaser in Burlington, searching for the finest mortgage broker tips, or considering your alternatives in Milton. A knowledgeable, experienced broker will help you comprehend your alternatives, walk you through the mortgage process, and make sure your mortgage fits your long-term financial objectives.